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Bank Of America Sues Itself - Mortgage by Randy Newsletter - May 2012

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Services for Real Estate Pros with Marketing Advisor & Squeeze Mortgage NMLS# 377413

 

Mortgage by Randy

monthly update to our clients, colleagues, family & friends

By: Randy Mitchelson, May 2012

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In Issue 50 We Touch On:

 

Bank Of America Sues Itself
Rent Counts Toward Credit Score

Fresh Help For Mortgage Trouble

 

 

Graduation season is upon us. Congratulations to all the families who have a graduate in their presence this year. As you impart words of wisdom to your loved one for their next phase in life, one of the best things you can teach them is about money, credit, budgeting and giving back. These skills are not thoroughly taught in school. If you do not feel equipped to be a good mentor on these topics, find someone in your circle of friends that you think is a good fit. It is a gift that keeps on giving...when they get their first bank account, their first debit and credit card, their first car loan, their first mortgage, etc.
 

The current newsletter and all prior newsletters are archived at the Mortgage by Randy blog. Bookmark it and share with your friends and family.  You can make your own comments and feedback as well.  Time for the news…

Get $25 Gift Certificates for just $10. Click Here


 

Mortgage Market: Why Bank Of America Sued Itself
The fall out from the housing and mortgage crisis may not be as big of a headline these days, but there was an eye-catching story in the news recently.   Due to the mergers and acquisitions and collapses that ensured during the mortgage boom and mortgage crisis, some banks are now in a position where they hold opposing positions on the same property.

For example, a recent catchy headline that circulated the business press showed how Bank of America sued itself in order to proceed on a condominium foreclosure. The press played it up as some kind of example of "big bank" stupidity. But the intelligent reader will realize that it is a necessary evil. Here's an explanation straight from the horse's mouth,

"We are servicing the first mortgage om behalf of an investor and we own the second mortgage," Bank of America spokeswoman Jumana Bauwens told HuffPost. "Naming the second lien-holder in the suit is necessary to eliminate the junior interest," Bauwens said.

There was no stupidity at play. The move was a necessary legal proceeding so that a foreclosure can take place.
Banks have plenty of black marks that people can point at but in this case I think that the opportunity for a catchy headline trumped the true meaning behind the story.

 

Personal Credit: Experian Can Now Include Rent Payments In Your Credit History

The rental market is flooded these days in the aftermath of the housing crash. One drawback of renting versus paying a mortgage is that most landlords do not report rent payment history to the credit bureaus. You could have years of perfect, on-time rent payment history and never get a boost in your credit score from it.
 

That is changing. Experian, one of the three major credit bureaus is now tracking rent payments through a company called RentBureau which Experian acquired in June 2010. "Including rental payment data in the credit file is a ground breaking win for consumers and our vision of full-file reporting. Many consumers feel that building credit is an uphill battle, but this approach gives renters credit for managing the payments for the place they call home," said Steven Wagner, president of Experian Consumer Information Services.

To read more about how this works and to learn how you can encourage your landlord or property manager to begin reporting so you can earn "credit" for making your rent payment on time, read the full article at my website DailyDollar. If you are already getting your rent payments reported on your credit report or if you go through the process of having your landlord set-up to report, we would love to learn more about your personal experience so leave a comment on the website.

 
Submit Your Credit Score Questions

Have you been given credit score advice that you are not sure about or read an article that has conflicting credit score information from what you believe to be true?  I am here to help.  Submit your question and I will be happy to respond. For more free and easy to read credit score tips visit the DailyDollar and click on the Credit Score and Credit Monitoring sections.

 

Economy & Financial Insights: Is The U.S. Economy Growing Or Contracting?
Opposing facts are making for a lively debate among economists, politicians and business owners about the direction of the U.S. economy.
 

On one hand, we have recently seen a lot of optimistic signals including:

 

- rebound of housing prices in some markets (up 20% in Southwest Florida)
- record setting home sale prices in Naples, Florida (2 mansions sold recently for $47.3 and $42 million)
- American emotional exuberance over the Facebook IPO
- Companies are hiring (but having hard time filling jobs due to skills gap)
- Housng inventory has fallen to the point where rents are rising and builders are getting busy again

On the other hand, there are ominous signs of economic contraction in the United States including:


- the "positive" effect of government stimulus is about over
- each month, hundreds of thousands of Americans are falling off extended unemployment benefits
- food stamps are at an all-time high
- real disposable incomes are not rising
- growing uncertainty about the effects in U.S. of the impending European Union monetary crisis

The election season has six months remaining. You can count on a lot of people sitting on their hands until the election is over includng the Federal Reserve. Whichever side of the coin sounds more like reality to you will likely play a role in how you vote in November. If the case is effectively made that our economy and jobs outlook is bleak, we may see a change in power. On the other hand, if Americans feel relatively comfortable and stable we will likely experience voting inertia at a scale that keeps the status quo.

 

Question of the Month: How Do I Get Help If I Have Mortgage Payment Trouble?

Since the housing and mortgage crisis began in 2007, the government has introduced various relief programs for homeowners. When one didn't work they introduced another. Different programs target different homeowners facing different scenarios. The alphabet soup of government programs seems endless. In addition there are both reputable and not-so reputable loan modification and debt relief companies that charge money to help you. How do you know
where to start and be safe?

The newly created Consumer Financial Protection Bureau (CFPB) can help you get connected with a HUD-approved housing counselor. At no cost to you, the counselor will help you navigate the sea of options to find a solution and avoid foreclosure. HUD provides a list of foreclosure prevention resources arranged by state. Military members and veterans can call or visit the VA's home loan website to receive assistance. 

Prior to calling the CFPB for help you should gather and organize certain documents to have handy during the phone call. To see a list of these documents, click here to visit the full article.

 

Giving Back: Memorial Day Reminder - Free Download "Because Of The Brave"
Memorial Day reminds us of the ultimate sacrifice that our military and their families have made. In honor of their service, visit MichellesAngels.com and get your free download of "Because Of The Brave", an inspiring song by singer-songwriter Ken Harrell.

"My prayer is that one day the world will hear it," said Harrell. Help make that prayer become reality. Listen to the song, download it and then share it with your friends and family. It deserves to be heard.

  

Need volunteers? Do you have a fundraising event upcoming?   Do you have a personal web site where you are raising donations for your cause?  Submit the information to randy@mortgagebyrandy.com by the 5th day of each month and we will do our best to include your information in the next issue.
 

Exciting news is forthcoming within the next week about our company. I look forward to sharing it with you very soon. Headed to San Francisco in mid-June to learn about innovative financial products being introduced, especially for consumers that prefer to not use traditional banks. Let the summer travel season begin...
 

Randy
 

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Mortgage by Randy newsletter, Copyright 2008-2012 Randy Mitchelson.  All Rights Reserved.

Randy Mitchelson is a licensed mortgage professional. All material presented herein is believed to be reliable but we cannot attest to its accuracy. All material represents the opinions of Randy Mitchelson.  Recommendations may change and readers are urged to check with their financial advisors before making any decisions. Opinions expressed in these reports may change without prior notice. Mitchelson can be reached at 239-851-6738.

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You have permission to publish this article electronically or in print as long as the following is included:

 

Randy Mitchelson is a business professional, entrepreneur and author with almost 20 years experience in financial services.  Mitchelson has served in leadership roles for Fortune 500 firms Bank of America, KeyBank and CIBC.

 

As a licensed mortgage professional and member of National Association of Mortgage Brokers, Mitchelson educates both individuals and groups about credit scoring by conducting personalized credit report reviews, action plans and one on one consultations. He is author of the free monthly newsletter, Mortgage by Randy.

 

He is owner of Estero, Florida based National Web Leads, LLC, (NWL) an internet marketing and lead generation services company. NWL drives new customer acquisition through email, web display, social media, keyword search strategies, mobile devices and more.

 

NWL distributes customers' marketing campaigns via NWL's network of publishing partners. Clients include payday lenders, auto loan lenders, educational institutions, legal services, health and beauty product distributors and more. Lead generation companies utilize end-to-end lead generation software solutions provided by NWL's technology affiliate company Applied Cognetics.

 

NWL operates te DailyDollar™. U.S. News and World Report names NWL's DailyDollar to its list of 8 Savvy Personal Financial Podcasts.

 

Mitchelson earned his BS and MBA at Rensselaer Polytechnic Institute in Troy, NY.  He is a founding member of the Southwest Florida Regional Technology Partnership Inc. and Vice President for the Michelle’s Angels Foundation Inc.  He is married to Susan, a Pharmacy Supervisor in the Lee Memorial Health System in Fort Myers, Florida.

 

 

 
 
 
 
 
 
 
 
 
 
 
 
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